However, reality slapped me hard in the face. I encountered many problems later, which made me not only give back all the profits, but also owe a lot of debts. In the end, I had to sell the house, and my wife and children almost left. 2017 was my darkest moment, in just a few months, I experienced a fall from the peak to the bottom.
Later, I reflected and summarized a lot. I had the honor to drink tea with a big shot in the currency circle and talk about the ups and downs of the currency market.
His words shocked me deeply.
Later, I began to summarize methods, summarize, review, and change my wrong trading methods and ways, and began to change my thinking and cognition, study + study + study, and I only enlightened under the guidance of experts! Although I can't be called rich and wealthy now, I can be considered to have achieved stable profitability. At least I can steadily outperform more than 80% of people.
Looking back at my own experience in the currency circle, it has also been full of ups and downs. From the initial 300,000 yuan entering the market, to catching up with the bull market and earning tens of millions; then from tens of millions looking back at my own experience in the currency circle, it has also been full of ups and downs. From tens of millions 2000+, to the current 1.1 small goals; and now, I am waiting for the arrival of the next round of bull market, the goal is to reach 3 small goals.
Next, I will summarize my experience and hope to give some help to currency people:
Big bull market, how to correctly hoard coins? Big bear market, how to do orders?
Compared to traditional financial trading such as stocks and futures, there are many more people making big money in the currency circle! Everyone sees many ordinary people like us, or people who are not as good as us, getting rich, how can they not be tempted?!
The temptation to make a fortune will make people lose their minds. Many people hold the idea of finding a few coins with potential, buying them with large funds, and waiting to make a fortune or change their fate against the heavens! The so-called potential coins are thousand-fold coins and ten-thousand-fold coins!
Here, I have to tell you a fact. People who make a fortune are, after all, a minority, and a pitifully small number. I don't deny that many people have made a fortune, but making a fortune is temporary, or rather, just in the account. One day, if you don't take it out and withdraw from the currency market, you will lose it all sooner or later. There are too many examples like this. Take my classmates as an example. We learned trading techniques together. He was very lucky, his capital was 20,000, and he earned 5 million, and it only took him 6 months. At that time, we were very envious, even jealous. At the same time, we also advised him to quickly take out the money and buy houses, gold and other fixed assets, or give most of the money to his family. As a result, everyone should have guessed it, that is, all the money earned was lost, and he was heavily indebted. So, how can we be invincible in the currency market?
Big bull market, how should we correctly hoard coins and make money?
First, find a coin with potential, use half of your capital to buy it, and don't sell it, hold it for at least half a year or a year; second, do swing trading. That is, use the remaining half of the money to constantly buy low and sell high, constantly making profits.
Specifically, how to buy low and sell high? In my own set of trading systems, I have summarized a simple trading system, that is, the Simple Immediate Trading System. Simple means that anyone with normal intelligence can learn it in half an hour, and can master it proficiently in about a week. Because it only uses 2 tools, one is the inflection point, and the other is the trend line. Immediate use means that the opening and closing positions are clear at a glance.
There is a big bull market, and there is also a big energy market. If it is a big energy market, and you still have the old idea, that is, buying low and selling high, you will often lose a lot. So? Is there a good solution?
The solution is to short. First, you can use leveraged trading + to short, use 1x position. For specific operations, you can ask customer service. Second, do low-multiple contracts. That is, set the contract multiple to 1, and when shorting, short with full position.
The specific short selling point, still, based on the Simple Immediate Trading System.
Simple Immediate Trading System, I spent 2 months summarizing it. In addition to the above advantages. There are also the following advantages:
1. Avoid human weaknesses, namely greed and fear. Clear buying and selling points, buy when you should buy, and sell when you should sell!
2. Applicable to all coins (including mainstream coins and altcoins).
3. Wide application cycle (15-minute line and above are applicable).
4. Avoid the passivation of indicators.
Finally, emphasize that in a big bull market, just do spot trading, don't touch contracts! Simple Immediate Trading System, summarized in four words: the great path is simple. I hope everyone will not underestimate it, because it reveals the rules of financial trading.
Contract trading 'must adhere to the bottom line.
Contract trading is extremely risky. The essence of making money under high risk is to do a good job of risk management. That is, as often said, earn more when you earn, and lose less when you lose. This principle is more applicable in contract trading. Therefore, I will first talk about the importance of risk management in contract trading as a whole, and then talk about a few important risk management items separately.
It can be said that making money in contracts is neither difficult nor easy. It is easy to make money once or twice, and it is difficult to make money steadily in the long term. In front of the market, we are all small leeks, we should ask ourselves for a lower result, just make money, don't pursue the win rate, don't pursue the lowest point and the highest point, don't think about getting rich in a short time. It is normal to open an order, right or wrong, and this should not affect your mentality, just stop the loss in time. If you earn less at a time, then earn more times, and take some time to accumulate slowly, and never be impatient. These ideas are like a sword of Damocles, which may bring you a potential disaster in a certain market.
In the final analysis, human nature in the trading market is just greed and fear. If you want to make money, you must find a way to overcome human weaknesses. Don't be greedy when you shouldn't be greedy, and don't be afraid when you shouldn't be afraid.
It's important to stick to your own thinking. The currency market is still very small, and there are not many trading opponents. The essential reason for making money is to stick to personal thinking. If you follow the trend and copy orders, it's good if you don't lose money. It's as difficult as climbing to the sky to make money.
Therefore, contract trading must strictly abide by the trading discipline you set, not be greedy, not take chances, and not be complacent because of a certain non-compliance with the rules to make a profit, and not be annoyed because of missing a market because of compliance with the rules. Discipline is ironclad, and discipline is the bottom line. No matter what, strictly abide by it.
And all of this is to do a good job of risk management and reduce the probability of fatal errors. Hold on to the following points, and making money will be a high probability event:
1. Reduce leverage.
Be sure to control the actual leverage of the position to no more than 2-3 times. Of course, it is best to be around 1 time, and if it is a full position mode, be sure to set a stop profit and stop loss to prevent large fluctuations such as 9.25 from liquidating the full position.
2. Learn to stop loss.
This is very important. I'll repeat it again. A lot of money lost by retail investors is not stopped by stop-loss, but by liquidation. Market fluctuations are inherently unpredictable. People who can make money basically earn more when they are right and lose less when they are wrong. Stop-loss helps you lose less when you are wrong. So retail investors are the same, if they make a mistake, they must admit it in time, they must stop-loss, and they must never carry orders. Set a loss ratio that you can bear, such as 15%, 30%, depending on your situation. When you reach the maximum loss ratio, don't take chances and wait, and don't think that you've already lost so much, so just carry it. In short, you must stop-loss no matter what. Maybe you don't feel it once or twice, and maybe sometimes you will find that you shouldn't have stopped-loss after the stop-loss, but after a long time, you will taste the sweetness. For example, before 9.25, you kept opening long positions, and although it was easy to hit the stop-loss, every time you stopped-loss, you would feel very frustrated at the time, but looking back at the market that night, how many people were liquidated with 2-3 times leverage, you should be glad that your stop-loss was so wise. In short, stop-loss is just cutting off a part of the meat, but not stopping-loss is equivalent to suicide.
3. Reduce frequency.
There is no need to say more about this. Everyone should understand that the more you do, the more mistakes you make. If you happen to encounter a mistake with a large loss ratio, it will be even worse. Therefore, in trading, try to do the right thing, reduce the frequency of trading, and try to grasp opportunities with a high probability. Less mistakes and less losses are good for both producing profits and adjusting your mentality.
4. Capital management.
Capital management is what I think is the most important thing in trading. Mastering good capital management strategies can well protect the principal, and can also well reduce drawdowns, protect profits, and ultimately increase your risk tolerance several times. Capital management determines whether you can make money, and it is also the lifeline for long-term survival in the trading market.
Here are a few disciplines to say separately, (1) Always keep your principal from being fully invested. Even if you keep 10% of your funds in cash, you will be grateful for the discipline you abide by in extreme risks. I usually keep 10-20% of my funds in cash, and occasionally do short-term altcoins, generally holding positions for less than 24 hours, and I leave after a short-term grab; (2) Contracts and spot must be separated, which is considered risk isolation. The spot part cannot be leveraged in any way, not even currency leverage, just eat the spot rise profit. The contract part can account for 20-30% of the total funds, and in very certain trend markets, it should not exceed 50% at most. The contract part is operated with low leverage, anchoring the coin-based yield, and after stable profitability in the contract market, the coin-based yield is also quite considerable; (3) Avoid excessively dispersed funds. Concentrate funds on a few relatively strong coins, don't be too dispersed, reduce the number of trading targets at the same time, for example, don't think about opening Bitcoin, Ethereum, EOS, and Litecoin contracts at the same time, that's what experts do, the purpose is to maximize profits, our retail investors first pursue profits, not maximization, and operating too many targets will only increase risks, not amplify profits, so it is best to concentrate firepower on the basis of improving the win rate, which will easily generate profits, which is much faster than dispersing funds and doing several targets.
5. Reflect frequently and summarize more.
The whole trading process has only a few steps. Judge the direction of long and short - find the entry point - determine the size of the opening position - add positions according to the market - stop profit and stop loss. Basically, these are the items. After completing a transaction, reflect diligently. In which link are you weak in the entire trading process, then focus on that link, ensure that you have good discipline to abide by and execute in different trading links, summarize the successful experiences and lessons in the transaction, and persist for a long time, and you will definitely gain something.
The above is what I want to express about contract trading. I did not talk about order opening techniques and strategies, but chose these seemingly common thoughts and concepts, not because techniques and strategies are not important, but because I think these basic thinking are more important, more practical, and must be mastered. They are like the foundation of a building. Only when the foundation is solid can the upper attic be more beautiful. Therefore, on the premise of understanding these basic principles, and then having a certain technical analysis ability, mastering some order opening techniques and strategies, the market contract is your ATM.
In the currency circle, if you want to earn 12 million from 10,000 yuan, there is only one way, if you want it fast, that is rolling positions +
The most adventurous method should also be divided into three times. That is, you should give yourself at least three chances.
For example, if the total amount of funds in the account is 200,000, the customer is allowed to lose up to 20%, that is, 40,000, then it is recommended that your most adventurous loss plan is: 10,000 for the first time, 10,000 for the second time, and 20,000 for the third time. I think this loss plan is still somewhat reasonable. Because if you do it right once in three times, you can make a profit or continue to survive in the market. Not being kicked out of the market is a success in itself, and there is a chance to win.
2. Grasp the overall trend of the market. Trends are much more difficult to do than shocks, because trends are chasing highs and killing lows, and you must have the determination to hold positions, while buying high and selling low is very in line with human nature. The more trading that is in line with human nature, the less money you will make. It is precisely because it is difficult to do that you make money. In an upward trend, any violent callback should choose to go long. Remember what I said about the rate? So, if you are not on the bus or get off the bus, wait patiently. If there is a drop of 10~20%, be bold and go long.
3. Set profit and stop-loss targets. Profit and stop-loss can be said to be the key to determining whether you can profit. In several transactions, we must ensure that the total profit is greater than the total loss. It is not difficult to achieve this, just do the following: ①) Each stop loss ≤ 5% of the total funds; ② Each profit > 5% of the total funds; ③ Total trading win rate > 50%. If the above requirements are met (profit-loss ratio is greater than 1 and win rate is greater than 50%), you can achieve profitability. Of course, you can also have a high profit-loss ratio and low win rate, or a low profit-loss ratio and high win rate. Anyway, as long as you ensure that the total profit is positive, the total profit = initial principal x (average profit x win rate - average loss x loss rate).
4. Remember to avoid excessive frequent trading. Because BTC perpetual contracts are traded 24 hours a day, many novices operate every day, wishing to trade every day of the month. As the saying goes: if you walk by the river often, how can you not get your feet wet? The more you operate, the more mistakes you will make. If you happen to encounter a mistake with a large loss ratio, it will be even worse. Therefore, in trading, strive to do the right thing, reduce the frequency of trading, and try to grasp opportunities with high probability. Less mistakes and less losses are good for both producing profits and adjusting your mentality.
Some things to pay attention to when compounding:
1. Enough patience, the profit of rolling positions is huge, as long as you can roll successfully a few times, you can earn at least millions of dollars, so you can't roll easily, you must find opportunities with high certainty;
2. A high-certainty opportunity refers to a horizontal oscillation after a sharp drop, and then an upward breakthrough. At this time, the probability of a trend is very high. Find the point where the trend reverses, and get on the bus at the beginning.
3. Only roll long, do not short.
But in any case, contracts are a high-risk game market, safety first, I wish you all a fortune in the currency circle.
Pattern.
Life is full of chance and opportunity. In fact, many times your efforts do not meet with opportunity, it really doesn't count for anything, let alone flying into the sky, how is it possible? My point is not to say don't work hard, but to say don't be too hard on yourself.
The future is full of unknowns, too many unpredictable things. Trading and life are not linear, full of ups and downs. What's needed is to be prepared, just wait for the wind to come. When the opportunity comes, you pull up the sails, and when in adversity, stay put and don't think about unrealistic things.
1. Short-term mouse.
We lack faith in trends, all we hear in our hearts is the sound of coins, trembling and carefully accumulating small money. But what does it matter? Short-term trading relies on time to accumulate profits, and single-day losses must be controlled within a certain range, because you can spend a few days to earn it back.
2. Faith.
Long-term trading requires faith, and many day traders also have faith. These understandings of the market and knowledge of ourselves build our confidence. Long-term trend trading relies on the market. If you encounter a big market, you must seize it, otherwise you will have to spend a lot of time waiting for the next big market. Or, when the next magnificent market comes, you are consumed to death by the market while waiting, and you lose sufficient capital, then it will be troublesome. So, luck is also very important.
3. Execution.
With the same technical analysis, some people earn a lot of money, while others lose their fortunes and have no way out. Why is this? Since everyone already understands that technical analysis is just a game of probability, why is the gap so big? This is due to the gap in execution.
For many traders, whether they make a profit or lose money, they are rigidly looking at technical analysis, and the computer screen is full of various drawings. But when they really enter the market, they often hesitate, and when they exit, they procrastinate. In the end, the only weapon of technical analysis is basically in name only.
One trading principle solves two problems.
This principle is: buy strong and sell weak!
Why buy strong and sell weak? Are you also operating according to this principle in your operation? If you don't understand the reason, you should think more. I won't explain more here. Adhering to the principle of buying strong and selling weak will greatly increase your income and reduce risks!
The first question is: the judgment of the trend!
We all know that trading should follow the trend. The probability of doing the right thing by following the trend is greater than 50%. So which trend to follow?
How to judge the trend and the reversal of the trend? The problem of which trend to follow has been solved in the law of trading, because you have determined your own operating cycle. After determining the trading cycle, it is meaningless to discuss the trend with others, because the direction of the trend may be different for different operating cycles, so what others say about the rise and fall has nothing to do with you, as long as you use your own trend judgment criteria to judge clearly on your own cycle.
After judging clearly, only do orders in the direction of the trend, which solves the problem of following the trend! Of course, there are also trend reversal judgment criteria, also for the sake of following the trend! As for what method you use to judge, anything is fine!
Trend line, moving average' are good, simple and clear, and there is no subjective judgment in them!
The second question: the structure of the trend!
After understanding the basic structure of the trend, the trend is clear and understandable in your eyes, no longer a tangled mess! So what is the basic structure of the trend?
Is it 申? 甲? 由? 日? The last one is 日! When you understand that the top and bottom of 日 are excellent positions to advance or retreat, will you still trade blindly?
It is said that this is not a secret talk, there is no problem that it will not work after it is said. Because this is an unchangeable essence!
Tao is the bone, supporting the framework of the transaction! The law is the meridian, connecting the inside and outside, and the art is the muscle covering the outside, so that the transaction is complete!
Patiently stay on the sidelines, waiting for the trend and the opportunity.
Patiently wait for the truly perfect trend in the market, do not make predictive interventions; 'Timing is everything', buy at the right time for those who think they are going to trade at any time, ignoring the entry, and sell at the right time. Trading is not something to do every day, there is a reason for the condition, and it is a set of views, appropriate reasons.
If you can avoid the stormy waves of the 'big wash', you can bring home huge profits.
Only when the market shows strong trend characteristics, or your analysis shows that the market is brewing to form a trend, can you let go and enter the market.
The above are all the theories of predecessors, my understanding is: there are two reasons for entering the market:
1. The trend that can be judged very definitely by your own analysis method (the trend that can be understood).
2. A 'certain' entry signal that has been fully tested and verified.
Knowing how to stay on the sidelines is like having the wisdom of the ancients. There's truth to that. Staying out isn't hard; it's simply not trading when the trend is uncertain.
Patiently hold positions, waiting for the end of the trend.
Trends are sustainable. My 'ideas' have never made me a lot of money, it's always my 'holding still' that has made me a lot of money, understand? It's me holding still! In an upward trend, your approach is to buy and hold tight, until you believe the upward trend is about to end.
It is rare to be able to judge correctly and hold still at the same time, I find this is the hardest thing to learn.
The position that 'goes with the trend' may have a lot of profit, don't easily 'abandon ship'.
'Cut losses and let profits run.' The purpose of patient holding is to maximize profits. The key is how to close the position. Solving how to close the position can solve the problem of patient holding. After more than a year of repeated exploration, I have found a way.
That is, don't think about buying and selling at the highest and lowest points, and adopt a smaller time cycle and exit on the right side. Although you lose a part of the profit, you can hold the position until the end of the trend, and you can also achieve consistency in closing the position.
Tips to increase profitability.
The market is a very magical market. It can bring people huge wealth, but most of the time it brings people joys and sorrows, and liquidation and departure. Today, let's talk about what tricks successful veterans have in the market.
Solve the following three problems, and you are basically not far from stable profitability.
1. What exactly can ultimately enable investors to continue to profit?
2. How can I improve the profit-loss ratio in investment?
3. What are the secrets to quickly doubling small funds?
There is only one way to solve these problems, which is to establish your own mature trading system and increase the success rate of the system to more than 70%. Then, continuous losses can be controlled within 5 times. Set the profit-loss ratio of the system to 3:1 or even larger, then you can achieve a stable win in every 10 trades through specific capital management methods.
To profit in trading, you must have a deep understanding of your own trading system, you must believe in your trading system, and having the right way of thinking and a good trading attitude is a prerequisite for successful investment.
The investment market has confirmed countless times that the law that 80% of people lose money is that no one can change the natural laws of the investment world, because this is the eternal iron law of the investment world. This is not to say that the stock market is so mysterious or difficult, but because most people have an irresistible nature, they doubt their trading system, and it is this fatal nature that ultimately leads to investment failure, and trusting the system is precisely the most important part of trading. Only by trusting your own trading system can you find the key to opening the door to wealth paradise, and open the door to wealth.
The whole secret to successful trading: lies in consistently sticking to your own trading system.
Successful investment does not depend on how powerful and excellent your tools are, but on whether you can use your trading tools well. On the road to wealth dreams, the most effective strategy is to focus and adhere to a good trading system. Focus and persistence can produce incredible power. When you can truly do this, you can create miracles that you cannot believe yourself.
Successful traders have a firm belief that they firmly believe that adhering to a successful trading system is the only choice for small people to achieve great things, and doubting their trading system is the beginning of investment destruction. Every successful investor has a unique quality, that is, having the right way of thinking, a rigorous trading attitude, strong self-confidence, decisiveness, and a spirit of never giving up in the face of failure. Even in the most difficult times of the system, they can completely trade according to the system, because they know that success requires a long-term vision, overcoming the short-sighted weaknesses of human nature, and having the patience and confidence to adhere to a fixed profit model.
Originality is not easy, I am Mu Qing, I only share content that is valuable to retail investors every day! The soul has a way, and the currency has a technique. The above content is all my experience in the market for ten years. I have only achieved today's achievements after continuous summary and reflection. It seems simple, but it is not easy to achieve the unity of knowledge and action. Today I share it with you, hoping to allow the majority of currency people to take fewer detours.
If you are also a technical control and are also devoted to studying the technical operations in the currency circle, welcome to follow Crypto Mu Qing, you can watch the real market to learn and exchange, and also clearly understand the direction and strategy of the market, no matter what style the market is, you can know it in advance, so that you have time to better grasp it!
